AUD/USD: Trades below Weekly’s Low

• AUD/USD started the week by being well below the SMA 30.
• The pair trades below the last week’s swing low.
• The H1 chart has been on a bullish correction.
• Intraday minor charts have been bearish.

AUD/USD-Technical Analysis- H4 Chart

The chart shows that upon finding its horizontal resistance around 0.66000, it produced a bearish engulfing candle and breached the simple moving average 30’s support. The pair continued it move with one more candle to close the trading week. This week, the pair started with a gap followed by correction. As of writing, it trades around the last week’s swing low. The sellers may wait for the chart to produce a bearish reversal candle to go short in the pair and drive it towards the South. The pair may find its support around 0.63500.

On the contrary, if the price goes above the last week’s swing low, it may continue its bullish correction to find for its resistance. The SMA 30 would be a solid choice for the sellers. It stays well above at the moment. It means the correction may end up being a long one.

Price Action Analysis- H1 Chart

The chart shows that the price had a bounce at 0.658080 after being very bearish. It had a bullish correction and breached the level afterwards. As of writing, the pair trades right around that broken level. The sellers will be very keen to go short in the pair from the zone and drive it towards the downside.

On the contrary, the buyers will be waiting for the price to make a breach at the level to go long upon having breakout confirmation followed by a bullish reversal signal. The price in that case may find its resistance around 0.65000.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn